Nicaragua’s Financial Institution Security Measures Under Fire Amid Corruption Allegations
US Treasury Takes Aim at Nicaraguan Financial Institution and Government Officials
Washington, D.C. - The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has taken a bold step against a Nicaraguan financial institution and several government officials accused of undermining the country’s democracy.
Designations Announced on October 9
The move designates Cooperativa De Ahorro Y Credito Caja Rural Nacional RL (Caruna), as well as Attorney General Ana Julia Guido De Romero and Secretary of the Presidency Paul Herbert Oquist Kelley. Caruna, a financial institution not subject to traditional regulatory oversight, was accused of having assisted Banco Corporativo, S.A., an entity whose property is already blocked.
Allegations Against Caruna
According to OFAC, Caruna has been used by Nicaraguan President Daniel Ortega to siphon money from oil trusts and credit portfolios worth $2.4 billion. The regime allegedly uses these funds to stay in power and pay a network of patronage. Regime officials, including those sanctioned by OFAC, have taken advantage of Caruna’s lack of oversight to invest in property and shelter their ill-gotten gains.
Sanctions Against Individuals
Ana Julia Guido De Romero was designated for her alleged role as Attorney General in fabricating cases against political prisoners and their families. Paul Herbert Oquist Kelley, the Secretary of the Presidency, was accused of spreading disinformation and propaganda on behalf of the Ortega regime to cover up human rights abuses.
Consequences of Designations
As a result of the designations, all property and interests in property of these individuals and entity that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. The move aims to target corrupt financial operations and Ortega regime supporters.
Background on Corruption Allegations
The sanctions come amid allegations of widespread corruption and human rights abuses in Nicaragua, with the Ortega regime accused of using government resources for personal gain and ignoring calls for reform.
Key Points:
- Cooperativa De Ahorro Y Credito Caja Rural Nacional RL (Caruna) has been designated by OFAC for its role in undermining democracy.
- Attorney General Ana Julia Guido De Romero and Secretary of the Presidency Paul Herbert Oquist Kelley have also been sanctioned for their alleged involvement in human rights abuses and corruption.
- The sanctions aim to target corrupt financial operations and Ortega regime supporters.
- The move is part of a broader effort to address allegations of widespread corruption and human rights abuses in Nicaragua.